Avoid these 7 common hybrid cloud blunders before it’s too late

The future of enterprise IT isn’t cloud-only or on-premises—it’s a hybrid cloud model that blends both. But here’s the key: this has to be intentional. Too many companies treat hybrid cloud as a fallback plan instead of a deliberate strategy. The real winners in this space are designing their architectures from the ground up with a hybrid approach, making sure their business and technology are in sync.

Think of hybrid cloud as an engineering challenge—not a compromise. Every workload has an optimal environment based on security, performance, cost, and compliance. Some workloads need the scalability of public cloud. Others, particularly in regulated industries, need the control of on-prem. The mistake is assuming you can just “lift and shift” without rethinking the architecture. That’s how you get inefficiencies, downtime, and costs that spiral out of control.

The smartest companies are the ones mapping their workloads to the right environments from day one. They’re not moving data back to on-prem because of cloud costs, but are instead leveraging hybrid models for performance, compliance, and AI-driven decision-making.

As Nataraj Nagaratnam, CTO of AI Governance at IBM, puts it: businesses need to think beyond just “going on-prem or going cloud.” The future is hybrid-by-design, with clear policies and a solid understanding of where your digital assets live.

1. Avoid the classic hybrid cloud mistakes

The most common mistakes in hybrid cloud? Rushing in without a plan, making cloud management too complex, and failing to understand the shared responsibility model.

First, workload placement is everything. Move the wrong workload to the cloud, and suddenly, you’re paying massive egress fees or dealing with unmanageable latency. Move the wrong workload on-prem, and now you’ve lost the speed and elasticity of cloud computing. Hybrid doesn’t mean “run everything everywhere”—it means strategic placement based on business needs.

Second, too many companies build multiple management control planes—basically, fragmented dashboards for different cloud services. This kills visibility. If you can’t see all your cloud and on-prem systems in a single pane of glass, you’re not running an efficient hybrid model. Complexity is the enemy of uptime and cost control.

And then there’s security. Cloud providers operate on a shared responsibility model, which means they secure the infrastructure, but securing your data and applications? That’s on you. Companies that don’t get this assume security is handled—until they get hit with a breach. And as AI-driven applications grow, security is about more than just infrastructure—it extends to AI models, datasets, and the responsibility of the model provider.

As AJ Thompson, Chief Commercial Officer at Northdoor, puts it: losing control of cloud operations means skyrocketing costs and increased security risks. The companies that thrive in hybrid environments think ahead and manage complexity proactively.

2. The hidden costs of poor cloud integration

Hybrid cloud sounds simple—connect cloud systems with your on-prem infrastructure. In reality? Most organizations struggle with integration.

Why? Because legacy systems weren’t built for hybrid cloud. The security protocols, data transfer speeds, and network architectures were designed for a pre-cloud era. When companies try to force these old systems to talk to modern cloud platforms, things break—or worse, they just run inefficiently.

One major issue is data sprawl—where critical data is scattered across multiple environments without clear governance. This makes compliance a nightmare and security risks impossible to track. Without real-time visibility, you can’t enforce policies or optimize resource usage.

Performance is another challenge. Hybrid cloud only works if connectivity is low-latency and high-bandwidth. But too often, companies assume their existing network can handle it. Ferris Ellis, CEO of Urban Dynamics, warns that network failures in hybrid environments can lead to serious SLA breaches and unexpected cloud egress fees—hidden costs that add up fast.

“A hybrid cloud strategy without seamless integration and governance is just a set of disconnected systems. The companies that win in hybrid cloud invest in automation, AI-driven orchestration, and secure, high-speed connectivity between cloud and on-prem environments.”

3. Hybrid cloud compliance isn’t a check-off-the-list item

The moment your data crosses borders, you’re dealing with a global maze of compliance requirements. Businesses that fail to plan for this early pay the price—either in fines or in lost business due to non-compliance.

For example, financial services companies operating in the EU must comply with DORA (Digital Operational Resilience Act) and NIS2 (Network and Information Security Directive 2). They dictate how businesses must secure data, mitigate cyber threats, and ensure operational resilience in hybrid cloud environments. If your data strategy ignores these, your hybrid cloud model is illegal.

For global enterprises, compliance is even trickier. Regulations aren’t standardized, meaning the rules change depending on where you operate. That’s why companies moving toward hybrid models need strong governance frameworks—not just security policies, but actual AI-driven monitoring that ensures compliance is enforced automatically.

As AJ Thompson (Northdoor) points out, the best companies don’t wait for regulators to knock—they build compliance into their cloud strategy from day one. That means designing hybrid architectures that account for data sovereignty, auditability, and automated compliance enforcement.

4. Hybrid cloud success requires cross-functional leadership

Hybrid cloud must be viewed as a company-wide strategy that impacts security, compliance, finance, and even legal. The mistake many companies make? Assuming IT can handle it alone. It can’t.

Think of hybrid cloud as a company-wide transformation project. If security, risk, and compliance teams aren’t involved early, you’ll end up with systems that don’t meet regulatory requirements—or worse, ones that expose your organization to unnecessary risk. The right stakeholders must be in the room from day one:

• IT teams – They own the infrastructure and ensure system integrations work.

• Security & risk teams – Their job is to anticipate security threats before they happen.

• Legal & compliance – Regulations aren’t optional. You need experts who understand global compliance laws.

• Finance teams – They make sure cloud spending aligns with business goals.

• External experts – Sometimes, you need outside specialists who have seen hybrid cloud done right.

Jacob Rosenberg, Head of Infrastructure at Chronosphere, warns that without buy-in from security and compliance teams, hybrid cloud initiatives stall or fail. The smartest companies get these teams involved early—not as a barrier, but as partners in building a secure, scalable system.

As Brian Oates, Product Manager at Liquid Web, puts it, “A hybrid cloud strategy needs input from multiple teams to work. IT drives it, but business leaders must make sure it aligns with company priorities.”

5. Hybrid-by-design, not hybrid-by-accident

Too many companies stumble into hybrid cloud without a plan. They move workloads back on-prem because of cost overruns or security concerns—not because they designed it that way.

A hybrid-by-design approach ensures your infrastructure is built for flexibility, compliance, and future-proofing. What does that look like?

• Intentional workload placement – Every workload has an optimal environment. Some need cloud elasticity; others require on-prem control. Smart companies map workloads accordingly.

• Hybrid cloud platforms – Tools like OpenShift and Kubernetes make hybrid cloud easier by providing a unified platform across environments.

• Data visibility & governance – You can’t manage what you can’t see. A strong governance framework ensures real-time control over where data resides and how it moves.

• AI-driven compliance – Regulations change constantly. AI-powered compliance monitoring keeps your hybrid environment in check without constant manual oversight.

As Nataraj Nagaratnam, IBM’s CTO for AI Governance, puts it: “Hybrid cloud architecture must take into account workload placement, data movement, and a risk-based approach to governance.”

The biggest trap is thinking that hybrid cloud is just about moving workloads. It’s about engineering an infrastructure that evolves with your business. The companies that get this right build hybrid environments that are agile, cost-effective, and secure.

6. Hybrid cloud costs can spiral if you don’t pay attention

Cloud is cheap—until it isn’t. The biggest myth in enterprise IT is that cloud automatically reduces costs. The reality? Poorly managed hybrid environments bleed money.

The reasons are simple:

• Hidden pricing models – Cloud pricing is complex. Compute, storage, and data transfer fees vary widely between providers. If you don’t track what you’re paying for, you’ll overspend.

• Underused resources – Many companies forget about unused cloud instances. Those resources keep running, and they keep billing.

• Cloud egress costs – Moving data out of the cloud is often far more expensive than putting it in. If you don’t optimize data flow, you’ll rack up unnecessary costs.

• Redundant services – Many organizations pay for multiple cloud solutions that do the same thing. Consolidation is key.

AJ Thompson, Northdoor’s Chief Commercial Officer, warns that unexpected cloud costs stem from a lack of visibility and planning. Businesses often pay for redundant or underused services simply because they didn’t structure their hybrid strategy correctly.

The solution? Cost governance tools and proactive financial management. The companies that thrive in hybrid cloud monitor costs in real-time, optimize workloads based on pricing models, and eliminate waste.

7. Two approaches to hybrid cloud, but only one maximizes value

There are two ways to build a hybrid cloud:

1. Make public cloud resemble on-prem – This is the “lift-and-shift” approach. Companies move workloads to the cloud but keep their old architecture. It’s fast but inefficient—you’re not leveraging cloud-native benefits.

2. Make on-prem resemble cloud – This approach embraces cloud-native architectures like Kubernetes, containerization, and automation. It allows seamless scalability, cost optimization, and security.

Most businesses go with Option 1 because it’s faster. But Option 2 is the real winner. Through modernizing on-prem infrastructure to mirror cloud efficiencies, companies create a uniform, scalable, and cost-effective hybrid model.

Jacob Rosenberg (Chronosphere) points out that companies taking the first approach are stuck managing two different architectures—one in the cloud, one on-prem. The second approach provides consistency, security, and efficiency across both environments.

Key executive takeaways

1. Integration and security are critical challenges: Poorly integrated on-prem and cloud systems lead to data sprawl, security vulnerabilities, and operational blind spots. Leaders must prioritize seamless interoperability, real-time visibility, and strict governance to mitigate risks.

2. Cost control requires strategic management: Unexpected expenses often stem from inefficient workload distribution, redundant services, and underestimated data transfer fees. Executives should enforce financial oversight with real-time cost monitoring and cloud optimization strategies.

3. Regulatory compliance is a business imperative: Industry regulations such as DORA and NIS2 add complexity to hybrid cloud operations, especially for global enterprises. Decision-makers must ensure governance frameworks are in place to maintain continuous compliance and avoid costly penalties.

4. Cross-functional leadership is essential for success: Hybrid cloud strategy isn’t just an IT concern—it requires collaboration across IT, security, finance, and compliance teams. Without cross-functional buy-in, businesses face misalignment, security gaps, and regulatory risks.

5. AI and automation are game-changers for hybrid cloud management: Organizations leveraging AI-driven monitoring, automated compliance enforcement, and workload optimization gain a competitive edge. AI can enhance security, optimize resource allocation, and improve decision-making in complex hybrid environments.

6. Network performance and latency cannot be overlooked: Hybrid cloud success depends on low-latency, high-bandwidth connectivity between cloud and on-prem infrastructure. Leaders must invest in advanced network design to prevent performance bottlenecks, cloud egress fees, and SLA failures.

7. Hybrid cloud is an evolving strategy, not a one-time deployment: A static approach to hybrid cloud leads to inefficiencies as business needs and technologies evolve. Companies must continuously refine their architecture, security, and cost models to maintain agility and long-term scalability.